Use the figure below to answer the following questions.
Figure 13.3.1
-Refer to Figure 13.3.1, which shows the outlays and revenues for the government of Pianoland.Automatic fiscal policy would be shown as a movement
A)from left to right along the revenues curve.
B)from left to right along the outlays curve.
C)from right to left along the outlays curve.
D)from right to left along the revenues curve.
E)all of the above

Question

Use the figure below to answer the following questions.
  Figure 13.3.1
-Refer to Figure 13.3.1, which shows the outlays and revenues for the government of Pianoland.Automatic fiscal policy would be shown as a movement
A)from left to right along the revenues curve. 
B)from left to right along the outlays curve. 
C)from right to left along the outlays curve. 
D)from right to left along the revenues curve. 
E)all of the above

Quizplus · Accepted Answer

Automatic fiscal policy involves changes in government revenues and outlays that occur automatically with changes in economic activity, which can be represented by movements along both the revenues and outlays curves in either direction.

Use the Figure Below to Answer the Following Questions